← Back to briefingZenaHub.
Englishአማርኛ
Economy

Ethiopia Moves to Close Tax Loopholes with Centralized Export Payment System

BirrMetrics · 13 hours ago · Read the Full Story on BirrMetrics
Ethiopia Moves to Close Tax Loopholes with Centralized Export Payment System
AI SUMMARY

The Ministry of Trade and Regional Integration has mandated that all oilseed and pulses export payments flow through the Ethiopia Commodity Exchange to combat tax evasion and smuggling.

  • The Ministry of Trade and Regional Integration ordered that all payments for oilseed and pulses exports must flow through the Ethiopia Commodity Exchange (ECX).
  • The directive takes full effect on October 11, 2025, for the 2026/27 production season.
  • A related measure covering contract and investment farming, Directive No. 1115/2025, took effect on December 10, 2025.
  • The government states the reform aims to close tax loopholes, curb smuggling, and eliminate inaccurate trade reporting.
  • Exporters must deposit the full value of each export contract into ECX-controlled pay-in accounts.
  • Payments to suppliers are released only after both parties submit a joint written request, with transfers completed within one working day.
  • A 0.02 percent transaction charge applies to payments processed through ECX.
  • The reform replaces Directive No. 929/2015, which allowed direct bank payments between exporters and suppliers.
  • The Ethiopia Pulses and Oilseeds Exporters Association (EPOSEA) warned that a 3 percent withholding tax on ECX trading inflates product prices and undermines international competitiveness.
  • Pulse exports fell 27 percent in the 2024/25 fiscal year.
  • Oilseeds and pulses generated over 610 million US dollars last fiscal year, accounting for 7.35 percent of Ethiopia's 8.3 billion US dollars export revenue.
  • ECX has partnered with 26 banks, including agreements with Sidama Bank and Siket Bank.
  • ECX has processed over 420 billion birr in transactions over 17 years and rolled out an online trading platform handling 12.5 billion birr in trades across 27,830 metric tons of commodities.
  • The exchange provided 1.1 billion birr in loans to farmers and cooperatives, and its warehouse receipt system helped 141 farming communities secure 2.2 billion birr in loans using 55,316 tonnes of produce as collateral.
Read the Full Story on BirrMetrics
Related
Kenya Overtakes Ethiopia as Africa’s Third-Largest Cryptocurrency Market
People Daily · 5 hours ago
Ministry of Revenues Imposes Income Tax on Digital Content
BirrMetrics · 8 hours ago
Spreading Moyale-Borana Conflict Paralyzes Regional Livestock Markets
Addis Standard · 11 hours ago
Ethiopia EEA Report Highlights Fast Growth Alongside Structural Vulnerabilities
StockMarket.et · 14 hours ago